By Dennis Zink
May 4, 2020
If you had to sell your business tomorrow, how would it fair? How can you know the way your business is positioned in the market? What follows are 10 important questions you should ask when buying or selling a business.
These Questions to ask when Buying or Selling a Business include variables that a prospective buyer would consider when evaluating your business as a target acquisition. The final score is a combination of market, management and product metrics that will help define the appeal your business could have to potential buyers. Using a 1 to 5 scoring system, where 5 is excellent and 1 is poor, you can use your best judgment to self-score your business in these areas.
Don’t be discouraged with a low score. Do use this as an opportunity to take corrective action.
Score values: 0 – Beyond poor; 1 – Poor; 2 – Fair; 3 – Good; 4 – Very good; 5 – Excellent.
Product differentiation from your competitors is important. What makes you different?
Add these two — your business and your industry scores — and then divide that sum by two to give you a composite trend score.
The areas where you are relatively weak, where you scored less than 3 points, should warrant your attention. Areas in which you scored less than 2 should be addressed immediately. Areas in which you scored 0 or 1 should be reviewed this week. If you scored less than 30 total points across all 10 areas, I suggest that you contact me at [email protected]
I can help you improve your business viability, business value and your score.